UK insurer Legal & General is weighing a 25% increase in infrastructure debt allocations, signaling growing confidence in the asset class. Roman Hederer, head of portfolio management, sees more opportunities and value in infrastructure than a few years ago.

Hederer believes Europe offers particularly attractive prospects, reflecting broader institutional interest in infrastructure investments. The potential allocation boost shows insurers are embracing infrastructure debt for steady, long-term returns.

Infrastructure debt provides financing to critical assets like ports, airports, and utilities. L&G's potential move suggests investors are expanding beyond traditional projects toward diverse infrastructure opportunities.

The allocation decision reflects how insurers are adapting portfolios to capture infrastructure growth while meeting long-term pension obligations. This shift demonstrates infrastructure debt's role in modern portfolio construction.